South Korea plans to begin taxing digital assets in 2029, two years later than previously scheduled, according to the finance ministry. Reuters reported the proposed delay on Thursday, citing a ministry statement.

The government plans to consult parliament on postponing the tax and use the additional time to prepare the systems needed for implementation. The delay reflects the planned start of information exchanges with the United States on virtual assets in 2029. The ministry said introducing the tax earlier could put South Korea’s domestic market at a disadvantage compared with global markets.

The government is also working on legislation covering digital assets. The ministry said the legislation could significantly change the market environment in the coming years. Over the next two years, the government plans to prepare measures for taxing overseas trading of digital assets, while considering the sector’s volatility, investor protection and ways to support industry growth.

The government’s next steps include submitting legislative amendments to parliament in 2027. It also plans to disclose details of specific tax codes to investors in the first half of 2028. These milestones are part of its preparation for the proposed 2029 start date.

The plan would move implementation two years beyond the previously envisaged schedule. The ministry said the government would consult parliament on the postponement and prepare tax systems during the intervening period. The proposed timing would align the tax rollout with the anticipated start of information exchanges with the United States.

The government has also identified overseas trading as an area requiring preparation. Its work over the next two years is expected to cover measures for taxing those transactions, alongside considerations related to market volatility, investor protection and industry growth. The ministry’s statement did not provide further details on the specific tax measures.

If the proposal proceeds, South Korea’s digital assets tax system would begin in 2029, following the planned legislative amendments in 2027 and the release of tax code details in 2028.

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